4 Mining Penny Stocks For Your Mid-October Watchlist
In the past few days, mining penny stocks and specifically precious metals penny stocks, have been climbing substantially. Usually, when investors talk about precious metals stocks, the main discussion is surrounding those in the gold mining industry. And right now, gold stocks are seeing a great deal of hype. There are a few reasons for this that are worth exploring. For one, right now there is a large amount of inflation occurring in the U.S.
With the price of consumer goods rising substantially in the last year and a half, many investors have turned toward more stable penny stocks. This includes mining stocks and other securities that tend to fluctuate less than others.
In addition to this, if we look at gold, we see that it is historically a safeguard asset. This means that investors turn to it in times of economic turmoil. So, if we consider all of this, the rise of gold stocks begins to make more sense. With all of that in mind, here are four mining penny stocks to watch right now.
4 Mining Penny Stocks to Watch in October 2021
IAMGOLD Corporation (NYSE: IAG)
IAMGOLD Corporation is gold mining stock that managed to climb by roughly 3.2% on October 13th and in the past five days by over 12.8%. This is a company that develops and operates a variety of gold mining properties. The company is involved in the exploration and development of gold, silver, and copper mines. Currently, it owns an interest in the Rosebel mine, Westwood mine, Pitangui project, and more.
Early in August, the company revealed its financial results for the second quarter of this year. For IAMGOLD, which is still recovering from the pandemic and economic troubles of the previous year and a half, the numbers were less than stellar. Revenue for IAMGOLD fell quarter over quarter and year over year alongside lower gross profit and adjusted EBITDA. While it did report a net loss, it does look like gold demand is rising alongside inflation and overall economic concerns.
Despite these negative results, IAG stock has been climbing in the market. Do you believe that the company could make a comeback in the market? Well, IAMGOLD recently announced its third-quarter results release date. These results will be available after the market closes on Wednesday, November 3rd, 2021. This is the next key date to look out for if you plan on buying IAG stock. For now, will IAG be on your list of penny stocks to watch?
Harmony Gold Mining Company Limited (NYSE: HMY)
Harmony Gold Mining Company Limited is another gold exploration, extraction, and processing company that climbed on October 13th. Some of the locations it mines in include South Africa and Papua New Guinea. In addition to gold, Harmony Gold explores for reserves of uranium, silver, and copper. Because of how broad its mining operations extend, many investors continue to show interest in Harmony Gold. It’s worth noting that it actively has nine underground operations in the Witwatersrand Basin.
In the company’s most recent update, its fiscal year 2021 earnings and revenue went up year over year. This has to do with increased metal prices and solid performance for the company. HMY stock often will move with the price of gold, silver, uranium, and copper themselves. The price of gold has the largest impact on Harmony, as that is the primary material that it searches for. In the last five days, shares of HMY stock have increased by around 13%, which is similar to IAG. With this in mind, will HMY be on your penny stock watchlist?
Yamana Gold Inc. (NYSE: AUY)
Yamana Gold Inc. is next on the list of gold stocks that pushed up on October 13th. By EOD, shares of AUY stock had shot up by over 4%. If you’re not familiar, Yamana Gold is a company that produces precious metals in a variety of countries. Currently, Yamana produces both gold and silver at its properties. It currently has land positions, development-stage projects, and exploration projects located in Brazil, Canada, Chile, and Argentina.
As stated with the other gold stocks on this list, it’s worth keeping a close eye on the price of gold itself. We see that even if no company-specific news has come out, shares of AUY stock could fluctuate based on the changing price of gold. Right now, we are witnessing many investors turn to gold stocks as a way to hedge bets against inflation, and this could explain the recent gains for AUY stock.
In tandem with its bullish movement, the company’s volume is also slightly higher than its market average. Moving forward, the company plans on releasing its third-quarter financial results after the market closes on October 28th, 2021. Based on this info, will AUY be on your penny stock watchlist?
New Gold Inc. (NYSE: NGD)
New Gold Inc. is a mining corporation that develops and operates gold, silver, and copper resources. The company owns 100 percent of the Rainy River gold-silver mine in Ontario, Canada, and the New Afton gold-copper mine in British Columbia, Canada.
In mid-September, New Gold Inc. updated its fiscal 2021 operational outlook. At its Rainy River mine, New Gold aims to produce between 405,000 and 450,000 ounces of consolidated gold equivalent, down from 440,000-490,000 ounces before. The company’s guiding figures have decreased slightly as a result of this occurrence.
“While the reduction in our near-term guidance at Rainy River is unfortunate, I remain confident the mine has reached an inflection point, as evidenced by the free cash flow generated in the second quarter and the mine is on track to deliver an improved second half of the year.”
President and CEO of New Gold, Renaud Adams
With this new info in mind, will NGD stock be on your watchlist in October?
Are Mining Penny Stocks Worth Buying or Not?
Mining penny stocks remain some of the hottest and most stable stocks to watch right now. While the future of the mining industry remains uncertain, right now, it could be worth keeping a close eye on.
Considering that there are so many facets to look out for, understanding the ins and outs of the mining industry will help you to make money with penny stocks. With all of that in mind, do you think that mining penny stocks are worth buying or not?